This PML-N government is good at only one thing: borrowing. According to a Business Recorder news item "Global capital market: Govt seeks loan to ward off pressures on forex reserves" carried by the newspaper on Sunday, the government wants to raise a loan from the international capital market through issuance of bonds to support the under pressure foreign exchange reserves due to widening trade deficit and decline in remittances. The government plans to borrow from the international market prior to December, and preparations to this effect are under way. An encouraging response from the market would send a positive message to the multilaterals and bilaterals which would be very helpful for future borrowing from them.
The government in four and a quarter years has already added to the country's indebtedness. In addition to growing government expenditure, the mark-up or interest on these loans leaves little or nothing for budget-makers to make any meaningful allocations for the social sector. Not only is the government on a loan-getting spree, it is also found to be taking highly expensive loans.